M/S Kunal Bsbk Joint Venture Private Limited vs. Chhattisgarh Housing Board

Held

The Court noted that a Committee had been constituted by the Chhattisgarh Housing Board to resolve issues related to refund-less payment of GST. Given the dispute between the petitioner and the respondents, the Court deemed it appropriate to refer the petitioner's matter to this Committee. The petitioner was granted liberty to make a fresh representation before the Committee, accompanied by all relevant documents. The Committee was directed to consider this representation strictly in accordance with the law and the agreed terms and conditions of the contract. The Court expected the Committee to consider and decide the petitioner's representation within an outer limit of 60 days from the date of receipt of a copy of the Court's order. The writ petition was disposed of with these directions.

Facts

The petitioner, M/s Kunal BSBK Joint Venture Private Limited, filed a writ petition seeking a direction to the Chhattisgarh Housing Board (respondents) to reimburse GST paid on running bills raised under a works contract awarded on February 9, 2016. The petitioner argued that since the contract predates the GST Act (effective July 1, 2017), GST should not apply. They also cited clause 2.14 of the tender conditions, stating that service tax would not be applicable to EWS and LIG houses, and that they had constructed such houses. The petitioner sought reimbursement of Rs. 8.53 Crores in GST paid up to RA 57, along with interest. The respondents contended that clause 2.14 of the tender conditions states that any payment claimed due to changes in the tax structure will not be entertained, although future applicable service tax would be reimbursed.

Key Issues

1. Whether the petitioner is entitled to reimbursement of GST paid on bills raised after July 1, 2017, for a works contract awarded prior to that date, considering the terms of the contract and the nature of the construction (EWS and LIG houses)? Petitioner's arguments: The petitioner contended that the works contract was awarded before the GST Act came into force, and therefore, GST provisions should not apply. They relied on clause 2.14 of the tender conditions, which stipulated that service tax would not be applicable to EWS and LIG houses, and argued that since they constructed such houses, they are entitled to reimbursement of the GST already deposited. They sought a direction for the respondents to decide their pending representations dated July 4, 2023, and October 13, 2023. Respondents' arguments: The respondents argued, citing clause 2.14 of the tender conditions, that any payment claimed by the contractor due to changes in the existing tax structure would not be entertained by the Chhattisgarh Housing Board. However, they acknowledged that service tax, if applicable in the future, would be reimbursed.